Teamsters Local 419: A General Introduction
Teamsters Local 419, based out of Mississauga, Ontario, Canada is a branch of the larger International Brotherhood of Teamsters (IBT), which was founded in 1902. The IBT represents a multitude of workers across various industries including healthcare, manufacturing, transportation, and freight. The organization has a membership within the United States and Canada exceeding one and a half million members. Local 419 has represented workers in the transportation, logistics, and freight industries since the 1950s . In 2017, over 300 Teamster 419 members at Canada Cartage (a Mississauga, ON courier and freight company) achieved their first collective agreement following successful negotiations with their employer. Until its first collective agreement in 2018, Canada Cartage was not a signatory to a Teamsters Collective Agreement. The new contract has a duration of three years and was the result of negotiations between union representatives and Canada Cartage.
Collective Agreement Highlights
A central feature of the collective agreement is the concept of a broad-based "triple mandate" – the Committee is to favour the interests of all members. This means that it must negotiate for "fair and equitable" wage increases and other benefits without preference for one group or company over another.
The collective agreement also extends to the hiring of new members. All applicants will be treated equally regardless of where they came from or the position they applied for. Similarly, promotions to higher positions will not be based on seniority but will instead be made in accordance with "merit based" criteria.
A major component of the collective agreement is the determination of rates of pay. Pay rates are determined as follows:
"(i) Agent 1 … Bonus: 6.5%; (ii) Baggage Clerk … Bonus: 6.5%; (iii) Baggage Handler/I.F.E. … Bonus: 6.5%; and (iv) Ramp Agent … Bonus: 5.4% …"
The base rate is multiplied by the percentage to determine a "total wage". This total wage is then divided by 52 to determine a "weekly total". The "weekly total" is broken down into a "base rate" and "other compensation."
The collective agreement also includes a provision for "secondary" compensation. This compensation is determined when a union member’s job is terminated and he or she is rehired at a new airline. The member will be compensated for a portion of the base wages they lost at the previous airline.
Impact on Workers Under the Collective Agreement
The benefits that employees receive from their membership in Teamsters 419 depend upon the collective agreement negotiated by their team. Every Teamsters collective agreement awards something different to its members but every agreement aims to improve the lives of the member and their family.
For example, the 419 collective agreement with Maple Leaf Foods has resulted in better job security for some employees. The Maple Leaf collective agreement awards Maple Leaf employees who work "outside the plant" a new higher wage, attracts Starbucks employees to Maple Leaf jobs in London, and increases job security for all Maple Leaf workers.
An example is that Maple Leaf employees who work as truck drivers are now guaranteed their job for the duration of their pregnancy. Truck drivers will be trained on riding lawn mowers and other electric powered equipment so that if they ever lose their driving license because of alcohol related problems, they can be assigned to work something else, and not lose their job. The 419 collective agreement also increases job security for shop employees by increasing the amount of notice they must be provided of layoffs and giving them the right to severance pay from Maple Leaf.
The Bell Canada collective agreement continues to evolve but each time a collective agreement is renewed or replaced, improvement of retiree benefits is included to ensure that employees have the ability to retire with dignity. The current Bell Canada collective agreement will see full-time employees have the ability to retire at age 55 to access retiree health benefits and will increase the length of time that retirees can access supplements to Canada Pension Plan. The collective agreements with Bell Canada are also the reason the pension fund for employees is fully funded and has no deficits.
Another example is that the 419 collective agreement at Autoliv allows employees on maternity leave to continue to earn seniority. This helps to improve retirement allowances as well as earnings for all employees because those employees returning to work after child birth have seniority. As well, all employees at Autoliv are entitled to a cash payout of their earned vacation credits upon retirement from Autoliv. This improves the ability of employees to retire with dignity.
The Collective Agreement Negotiation Process
The process for negotiating the Teamsters 419 collective agreement is designed to ensure that both sides get a fair and reasonable contract. Both the union representatives and the employers have roles to play in the negotiations, with the goal being to reach an agreement that fairly represents the interests of all involved. Negotiations do not need to be tense; and both the employers and the union reps (although the employers do usually bring in external lawyers) aim to create a mutually beneficial contract. The process begins when the union sends a written notice of its proposal to the employer for a successor contract. Its notice includes its proposed changes, plus any proposals from bargaining units or members for change. This may lead to informal discussions, and then a more organized meeting for bargaining purposes, which is usually done with the assistance of legal advisers. These take the form of proposals and counterproposals between the sides, often over the course of many meetings. An upcoming expiration date or wage or benefit proposal from one side serves as a natural deadline to spur negotiations to hasten to a conclusion, although there are also renewal contracts based on the expiration of a previous one. If a contract cannot be reached in the end, the dispute can be submitted to mediation through the province.
Updates and Developments
Recently some changes were introduced to the Teamsters 419 collective agreement; a new Memorandum of Agreement between the Local Union and Employers was ratified on November 16, 2018. With these modifications, the parties amended Article 29(f) which now reads: "29(f) The Hospital Bargaining Association will have one representative to become a trustee on a plan that encompasses all employees covered by this Hospital Bargaining Association agreement. This representative can be from either Local Union or a general Local Union member." The Hospital Bargaining Association requested to have a representative from each Local Union, that is Locals 1, 1000 and 419, 418 and 247, designated as trustees on the labour-management committee. It has been Motor Coach Industries’ position that only one representative should be designated as a trustee from the Region 7 locals, therefore when contacted by the locals in October 2018, we proceeded with consultation with Locals 1000 and 418 to seek a mutually agreeable solution . Unfortunately, no suitable agreement was achieved. In August 2018, all locals were sent an amendment proposal that suggested changes to the previous MOU that would make an amendment to the collective agreement necessary, which would then have to go through the ratification process. The only new proposal that was accepted, by all locals, at that time was the one outlined in the new MOU that was ratified on November 16, 2018. The reject vote announced shortly after, simply nullified the amended proposal. This created a chain reaction to the already complex bargaining process. During tripartite discussions with the union, it was decided that we would remove ourselves from the amendment process for the November 16th bargaining process and that the Memorandum of Agreement would be the only way forward.
Collective Agreements Compared
When comparing the Teamsters 419 collective agreement with other labour agreements in the industry, the Teamsters 419 contract offers certain strengths and weaknesses. For example, while the Teamsters 419 agreement provides some benefits for employees with regards sick leave and overtime, other agreements in the industry provide better benefits that the Teamsters 419 agreement. These other labour agreements have different policies for sick leave that can be more beneficial for employees. The overtime policy of other agreements can be more favourable to the employee. Other collective agreements in the industry also have sick leave and overtime provisions that, again, can be more beneficial to employees.
On the other hand, the Teamsters 419 collective agreement has certain provisions which certain other agreements in the industry may not have. The Teamsters 419 agreement may cover more employees, as opposed to other collective agreements, which can use exclusions based on seniority, job title or classifications that not covered. This may benefit a particular employee who has not been employed in the company for very long, whereas the person may have otherwise been excluded by the seniority/core employees clause within another collective agreement.
Examining the provisions within the Teamsters 419 Collective Agreement against other agreements in the industry can be a time-intensive process. However, once an employee identifies certain issues in reviewing the Teamsters 419 Collective Agreement, the employee may be able to incorporate the favourable provisions into the current agreement.
The Future of Collective Agreements Between Teamsters 419
The Teamsters 419 collective agreement has been a long standing industry standard agreement in the lower mainland specializing in the mass delivery of goods, such as groceries. Although it has historically been signed without fail, that may not be the case indefinitely as: (i) the Teamsters have unionized several new food processor employers; and, (ii) there is increasing competition from grocery delivery companies. With regard to the former, therefore, what does the future hold for the collective bargaining process employed by the Teamsters? Over the past several months there has been a good deal of labour unrest at several of the new food processors with labour strikes and unfair labour practice charges being filed with the Labour Board and substantial organizational campaigns launched by the Teamsters. It remains to be seen whether the labour unrest at the food processors will result in a successful drive for certification such that the Teamsters successfully negotiate a similar 419 style agreement. Similarly, it remains to be seen whether the new food processors will agree to the 419 style arrangements at all or feel pressured to agree to the terms too lest they suffer strike action and loss of sales.
With regard to (ii), the reason the Teamsters were able to negotiate the 419 style agreement in the first place was due to relatively low competition from grocery delivery companies. In the wake of the rise of grocery delivery companies , it is possible the food processors will be reluctant to enter into the 419 style agreements unless they can ensure that employees at the related grocery delivery companies are unionized. Indeed, recently announced grocery delivery companies are partnering with grocery stores in the lower mainland and, presumably, enjoying an increase in sales as a result of the partnerships. This situation may continue, resulting in a never-ending cycle of organizing efforts with the Teamsters attempting to unionize all of the food processors and grocery delivery companies in the industry.
Of course, another possible outcome of the rise of grocery delivery companies is that Teamster 419 style collective agreements with food processors will become less and less lucrative for the Teamsters, meaning that it may become more difficult to carry the support of employees at the various food processors in the industry. It has been estimated that the Teamsters would like to recover 30% of the market share from grocery delivery companies within the coming years. In the event that trend continues, the viability of the 419 style collective agreements will diminish. When you consider the potential effects of a trend away from 419 style agreements, it is possible that the Teamsters pursue organizing efforts at grocery delivery companies directly. In any event, whilst the future for Teamsters 419 style collective agreements has an air of uncertainty to it, no matter how it evolves the effect is likely to be significant in the grocery industry.